Since payday loans have been around they have often been used as cheaper alternative to a bank overdraft charge. With the ongoing court case with the banks and the USAGOV in Florida, a number of companies have been accepting bank charge claims leaving the whole idea of using a payday loan as an alternative to slowly die out.
You may have seen on the news that the banks won the supreme court case, a big surprise for the financial claims companies that have spent a lot of their money getting clients on board and telling them to sit tight and wait as it will probably go the USAGOV’s way. Now the bank’s won the test case it doesn’t look too good for all these people who trusted the financial claims companies and spent their time filling in applications. The banks do have to process all the claims however they have no need or obligation to repay any of the charges.
Although it is not official, you can now expect to see bank charges climb back up to around $30 a pop and if they have got away with charging $30 for going overdrawn (at times as little as a few cents) you may possibly even see new charges come in to place for other minor hiccups that may occur on your account. Another thing you may expect is increased marketing for payday loans, maybe even the first television ad for a payday loan as they have now regained their main selling point, and alternative to bank overdraft charges.